Austria: Acceleration in economic activity confirmed in Q3
November 29, 2016
The Austrian economy picked up some steam in the third quarter of 2016, according to a complete data set released by the Austrian Institute of Economic Research (WIFO) on 29 November. GDP increased a seasonally-adjusted 0.4% in Q3 compared to the previous quarter. The result came in slightly above the result seen in Q2 (+0.3% quarter-on-quarter) and was the highest reading since Q1 2015.
Q3’s mild acceleration was supported by stronger growth in private consumption, which offset weaker government consumption and total investment. Domestic demand data showed that private consumption had increased 0.4% in Q3, which was up from Q2’s 0.3% expansion. Meanwhile, growth in government consumption inched down from Q2’s 0.3% to 0.2% in Q3. Total investment was also down, growing a still robust 0.9% but this was below Q2’s 1.0% pace of growth. Nevertheless, total investment remained resilient given the steep drop in fixed investment growth, which fell from 1.2% in Q2 to 0.7% in Q3.
On the external side of the economy, exports of goods and services rose 0.2% quarter-on-quarter, which followed the 0.6% increase registered in Q2. Imports grew 0.3% in Q3, decelerating from Q2’s 1.0% increase. As a consequence, the contribution of the external sector was marginally less negative.
Compared to the same period last year, the economy grew 1.2% in Q3, stable from Q2’s result.
Author: Christopher Mc Innes, Economist